According to a report by Javelin Strategy and Research LLC, a consulting firm based in California, US which advises businesses on how to navigate the digital financial world, frauds cost US $ 14.6 million to e-commerce businesses every year, around 7.5 per cent of the revenue.
74 per cent of these costs emanate out of the extra personnel needed to guard the websites, whether involving equipment and software needed for anti-scamming measures. While 40 per cent of the survey panel estimate that the level of fraud is stable, 38 per cent said that it is worsening. As a result of increasing fraudulent activities, 35 per cent of the websites involved in sampling are planning to increase the anti-fraud budget in the future.
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The survey further suggests that in terms of the losses caused by frauds, 19 per cent of them result out of strict regulations while 17 per cent are due to ‘chargebacks.’
